The recent decision made by the Administrative Court has extended the admissibility procedure for the disputed AMS algorithm. The court has identified a need for further clarification on the matter, specifically regarding whether the digital tool intended to determine labor market prospects for unemployed individuals would significantly influence the decisions of AMS personnel. This question has been under scrutiny for almost three years, since the Labor Market Assistance System (AMAS) was supposed to be introduced nationwide at the beginning of 2021 but was stopped in August 2020 by the data protection authority.
The intention of AMAS was to divide unemployed individuals into three categories with high, medium, and low labor market opportunities using a computer algorithm. The goal was to allocate funding measures more efficiently and provide support to those with medium labor market prospects. However, the final decision about unemployment support was ultimately made by responsible advisors such as whether someone would receive expensive skilled worker training or not.
Recent court decisions have determined that the algorithm falls under “significant public interest,” which is a prerequisite for justifying the use of personal data. However, it also confirmed that profiling is involved in this process. Whether or not profiling is admissible will depend on how much AMS personnel’s decisions about assigning job seekers are determined by automatically calculated labor market opportunities. This controversial question was not addressed by the Federal Administrative Court, so a new procedure will be necessary to clarify it further.
As a result of these developments, it remains unclear when and in what form AMAS could be used. The program is currently being examined in detail by its creators, and no further information has been released yet. The original report on this topic came from The Standard online news outlet.